During the past decades, Ireland became one of the most promising jurisdictions for establishing and doing business thanks to the proactive effort of the local government, stable local political and economical environment. The state suggests equal opportunities for entrepreneurship both to local and foreign businessmen. And the list of the advantages the jurisdiction is associated with is not limited to this valuable point only.
Advantages of the Jurisdiction
Registration of a company in Ireland may be a promising endeavor in view of the next general benefits this jurisdiction opens to all investors who are interested in entering it:
- fast-growing economy with an emphasis on electronics, software, engineering, and pharmaceutical sectors
- qualified local labor force involvement of which is associated with moderate costs
- developed modern infrastructure
- advantageous tax conditions for setting and doing business, including the availability of preferences introduced by approximately 70 double-tax treaties.
These are basic points that should be highlighted about the jurisdiction at the start. If you wish to find out more precisely about concrete benefits the jurisdiction may offer in the areas of your current business or interest, Prifinance lawyers can consult you more precisely on the matter.
Major Forms of Legal and Business Presence
Setting up a company in Ireland or establishing a business presence in an alternative way is possible in one of these forms:
- Private Company Limited by Shares – a type of Irish legal person that can be incorporated and owned by persons whose liability for the outcomes of such company's operation should not exceed the value of shares owned by such participants. There are certain restrictions fixed in the legislation concerning the transfers of shares of such a company – they cannot be freely offered and sold to third parties. The same restrictions, more detailed, should be fixed in the company's statutory documents too. The number of shareowners of this company should not exceed 149 persons.
- Public Company Limited by Shares – an option for doing business where participants are liable for the outcomes of such an entity’s operation only within the limits of the shares owned by them. The minimum chartered capital for this entity shall be at least EUR 25,000 and ¼ of it shall be paid up at the moment of company registration. The major peculiarity of this company formation option is an opportunity to list shares in the stock exchange as well as an opportunity to offer and sell such shares to third parties freely without any restrictions. At the same time, stricter requirements for accounting and reporting are applied to such an entity.
- Branch – an option suitable for non-resident investors who are not willing to register a company in Ireland but want to test local business opportunities before deciding to invest more. The registration is required in this case and it enables a foreign enterprise to carry out the same types of business activities as in the country of its primary registration.
- Representative Office – this is another variation for establishing a business presence in Ireland suitable for non-resident investors that excludes an option of doing business. At the same time, it is possible to carry out promotional and market research activities the results of which may be important for deciding whether to start a business in the jurisdiction on a larger scale.
These are the basic forms of establishing a business presence in the considered jurisdiction. If you are interested in registering a company in Ireland but don't know which option can work best for your case, Prifinance lawyers are ready to facilitate resolving that matter. Lawyers will suggest you the most suitable variation for doing business locally appropriately to the background of your business case and present objectives.
Company Registration Requirements and Steps
Company formation in Ireland is carried out under the individual strategy. But, general steps that should be passed are the following:
- Choosing preferred types of business operation that an anticipated company in Ireland will be carried out.
- Developing business name options for a company in Ireland, verification, and reserving the final option of a business name.
- Collecting the information from shareowners and beneficiaries required to be submitted along with the registration documents.
- Choosing future managers and collecting the information required for appointing them.
- Drafting statutory documents and registration forms for a company in Ireland.
- Paying up a chartered capital of a future enterprise.
- Forming the package of registration documents and submitting that for consideration to a registrar. The company is deemed to be created from the moment of entering the respective information to the Company Register in Ireland.
- Registering an enterprise for the purpose of paying taxes and hiring employees.
- Applying for getting licenses and special permits that are obligatory for carrying out certain types of business operations (like banking and financial ones).
If you have a preliminary understanding of a company you wish to open in Ireland, Prifinance lawyers are ready to develop an individualized plan for doing so and assist in its realization and further support of a newly-formed enterprise.
Legal and Regulatory Framework
Equal opportunities to set up a company in Ireland are introduced both to local and foreign businessmen. The process of opening a new legal person is not bureaucratized and complicated. State authorities express a business-oriented approach towards the company registration and its subsequent operation. Different requirements to accounting and reporting are applied depending on the type of business entity. For certain types of regulated commercial activities, special authorizations or licenses may be required (like for banking and financial ones).
The Companies Act, the Registration of Business Names Act, and the Investment Funds, Companies and Miscellaneous Provisions Act are the most important legal acts that govern the process of company registration and its subsequent existence. The Companies Registration Office and the Central Bank of Ireland are the main state authorities that foreign investors will be likely dealing with while carrying out the process of company formation and handling its subsequent operation.
Tax System in Ireland
An option of setting up a company in Ireland should be assessed along with the list of tax highlights that are important for making the final decision whether to register a company in Ireland or in any other jurisdiction:
- Corporate income tax rates – (1) trading corporations – 12.5% (2) non-trading corporations – 25%
- Personal income tax rate – 40%
- Value-added tax rate – 23%
- Withholding tax rates – (1) dividends – 25% (2) interests – 20% (3) royalties – 20%
- Capital gains tax rates – (1) corporate – 33% (2) personal – 33%
How Prifinance Lawyers May Help You
If you are thinking about an option of company incorporation in Ireland or in any other state, Prifinance lawyers can consult you in detail about the suitability of all preliminary registration options for your concrete case and help with making the final choice. Among others, Prifinance lawyers can handle these matters:
- develop and realize a plan for company registration in Ireland
- support the process of company registration, including communications with local partners and state bodies
- assist with bank accounts opening, including passing all compliance procedures
- support the subsequent operation of a newly-formed legal person further, after completing the company registration process.
We offer prompt company registration and bank account opening services in Ireland and worldwide. New registration and ready-made options. Provide extensive details for more precise consultations and suggestions that can be effective for your future project.